Abstract

This paper explores the extent to which current reforms of the euro-zone’s governance
remain encased in the constraints of the Maastricht Treaty - the narrowness of its underlying
paradigm; the gaps and imbalances of its design – and the implications for the future of the
euro. With a model of ‘sound money, sound finances’, based on the precepts of German
ordo-liberalism, a vulnerability was exposed: it lacked the instruments, not only to aid, but
also to police. This was exacerbated by the shallowness of public legitimation, ignored from
the outset. The uncertainty, delays and division displayed by the euro-zone’s response to the
crisis owed much to the ‘lock-in’ of Maastricht. The paper includes a critical reassessment of
Dyson and Featherstone (1999).